Chennai: Amid serious efforts by Andhra Pradesh to court the mega project for Kakinada, the Tamil Nadu government on Thursday announced that the proposed multi-billion-dollar HD Hyundai shipbuilding yard in the coastal c…

Chennai: Amid serious efforts by Andhra Pradesh to court the mega project for Kakinada, the Tamil Nadu government on Thursday announced that the proposed multi-billion-dollar HD Hyundai shipbuilding yard in the coastal city of Thoothukudi is progressing to the detailed project preparation stage.Industries Minister S Keerthana made the announcement following a high-level meeting with an HD Hyundai delegation led by top executive Sunjoon Hong, which concluded a 10-day tour of Tamil Nadu that included a comprehensive site survey in Thoothukudi.A sharp U-turn? Kerala CM V D Satheesan clarifies his ‘Tata planning to build Rs 10,000 crore shipyard’ statement“During the meeting, the visiting team confirmed that they’re moving ahead with the project in Thoothukudi,” said Keerthana, putting speculation to rest. The HD Hyundai delegation also travelled to New Delhi to hold discussions with officials from the Union Ministry of Ports, Shipping and Waterways.Though HD Hyundai signed an MoU in December 2025 to establish the shipyard in Thoothukudi, questions arose regarding the project’s future following the change in state administration in May 2026. Thoothukudi is moving from ambition to action. Under the visionary leadership of Hon’ble Chief Minister Thiru C. Joseph Vijay, the proposed HD Hyundai shipyard has entered detailed project preparation, with the DFR process underway and the DPR process initiated.HD Hyundai… pic.twitter.com/8Iz9BKycGe— Virudhai Magal Keerthana (@Keerthana4VNR) September 10, 2026

Speculation intensified after an Andhra Pradesh government delegation met with company executives to lobby for relocating the project to their state.However, Keerthana’s diplomatic outreach during a visit to South Korea in June — followed by a delegation meeting with Chief Minister C Joseph Vijay in Chennai — reinforced the state’s commitment. The TVK government made it clear that keeping the anchor project in Tamil Nadu was non-negotiable, recognising that losing the venture would dampen investor sentiment and deal an early blow to the four-month-old dispensation’s credentials.The shipyard is set to serve as a cornerstone investment for Thoothukudi, which has been heavily promoted as an industrial hub. The city already hosts Vietnamese EV manufacturer VinFast’s production plant, alongside several renewable energy projects currently underway.Following the weekly coordination mechanism established between state officials and the corporate stakeholders, the V O Chidambaranar (VOC) Port Authority issued a work order for a Detailed Feasibility Report (DFR) in consultation with HD Hyundai, and preliminary work has commenced at the site.“In parallel, a Request for Proposal (RFP) has been floated inviting global consultants to prepare the Detailed Project Report (DPR), bringing international expertise into the planning of the shipyard and the wider maritime manufacturing ecosystem. These steps mark the project’s progression from the MoU stage into detailed technical and project planning,” Keerthana said.Discussions between the HD Hyundai team and the Tamil Nadu Industries Department on September 9 focused on incentive structuring, the status of the DPR, and the overarching project timeline. The state government has already issued a Government Order (GO) transferring approximately 1,700 acres of land for the first phase to SIPCOT, which will develop common infrastructure in tandem with the VOC Port Authority.Keerthana emphasised that beyond the shipyard, the state is building out a comprehensive industrial ecosystem to establish Thoothukudi as a global maritime manufacturing center.“The shipyard is expected to anchor a wider industrial ecosystem in Southern Tamil Nadu, bringing investment, technology transfer, skilled employment, supplier development, localisation, and integration into global shipbuilding value chains to the region,” she added.Apart from Thoothukudi, the Union government has proposed similar shipbuilding clusters in Dugarajapatnam (Andhra Pradesh), Kucchadi (Gujarat), Dighi (Maharashtra), and Kendrapara (Odisha).

Source: Deccan Herald